4.9% in August to 4.7% in September. After yesterday's disappointing inflation data, the moderation of earnings growth will ease fears of another near-term rise in interest rates. With economic activity gathering pace, however, the labour market looks set to continue to tighten.

A snapshot of Britain's industrial sector by the Confederation of British Industry showed that most regions look poised to recover from the manufacturing recession. However, many are still struggling, the CBI said, arguing that interest rates should stay on hold for now.

The oil price continued its spectacular rally, with crude futures soaring 41 cents to a three-year high of $26.11 a barrel in Asian markets on comments by Mexican oil minister Luis Tellez that the price surge was not a concern.